The Highlight of The Chevron Earnings Call

Patricia Yarrington, the CFO at Chevron had a great quote during the last Chevron earnings call:

“But the value of the Permian and its tremendous economic capabilities and its capital efficiencies provide great flexibility because of its short-cycle, high-return attributes. Yes, other parts of the portfolio have to compete for capital against that. So I think it raises the bar on where that incremental dollar is going to go. Permian will get the first call but we will manage it as a portfolio, and over time you should still expect us to have some significant other projects but we can pace those projects quite nicely I think and match against the opportunities the Permian provides for us.”

Continue Reading!

Passive Income Built During Recessions

On Monday, March 9th, 2009, at approximately 4 PM, someone out there successfully placed a buy order for 10,000 common stock shares out of Starbuck’s then existing 1,460,000,000 ownership pie. This amount of overall ownership was a drop in the bucket. It only gave some guy an ownership claim on 0.00000684931% of the Seattle-based coffee empire. This wasn’t even a large enough investment position for the management to have any idea who you are if you were to show up at the annual shareholder meeting.

Continue Reading!

Should You Buy S&P 500 Index Funds Right Now?

I just saw the news reported in the Wall Street Journal earlier today that Vanguard has received $250 billion in net inflows so far through October, compared to $236 billion in net inflows through all of 2015. About $200 billion of those Vanguard inflows have been invested in index funds.

I understand the collection of events that have caused index funds to be fashionable. The industry of financial advisors has always been a bit slithery and morally suspect, and the net results from holding an ownership interest in the S&P 500 has a fantastic track record of late.

Continue Reading!